Telecom giant Verizon Communications has recently reported its fourth-quarter results, and it has impressed investors with its robust jump in wireless postpaid phone subscriber additions. The company has raised its dividend for the 17th consecutive year, with a quarterly dividend of $0.665 per share (annualized dividend of $2.66), reflecting a yield of 6.7%. After analyzing these results, Tigress Financial analyst Ivan Feinseth reiterated a buy rating on the stock and increased the price target to $50 per share from $45. Feinseth praised Verizon for its strong subscriber and cash flow growth in 2023 and expects further acceleration this year. He believes that the ongoing 5G and fixed wireless broadband momentum, increased service offerings, operating efficiencies, and margin improvement will drive a reacceleration in cash flow growth and improving business performance trends. Feinseth also recognized Verizon’s solid balance sheet and cash flow, which support the company’s ongoing investments in spectrum expansion, growth initiatives, and dividend hikes. With its high dividend yield and industry-leading position, Verizon is considered a compelling investment opportunity.
Enterprise Products Partners (EPD)
Enterprise Products Partners, a master limited partnership providing midstream energy services, has announced a quarterly cash distribution of $0.515 per unit for the fourth quarter of 2023, representing a 5.1% year-over-year increase and reflecting a yield of nearly 8%. Stifel analyst Selman Akyol reaffirmed a buy rating on the stock and raised the price target to $36 per share from $35 after reviewing the fourth-quarter results. Akyol noted that EPD’s results slightly surpassed his expectations, and he expects the momentum in the company’s pipeline and export throughputs to continue in the near term. Additionally, EPD has increased its distributions for 25 years and is expected to primarily return capital to unitholders through distributions, with buybacks being opportunistic. Akyol cited Enterprise’s strong financial profile within the midstream sector, allowing it to withstand turbulence from a volatile macro environment. As a result, Enterprise Products Partners is considered an attractive dividend stock.
MPLX LP (MPLX)
MPLX LP, another midstream energy player, announced a quarterly distribution of 85 cents per common unit for the fourth quarter of 2023, payable on Feb. 14. With a dividend yield of 9%, RBC Capital analyst Elvira Scotto reiterated a buy rating on MPLX stock and increased the price target to $46 per share from $45. Scotto noted that the company’s Q4 2023 adjusted EBITDA surpassed consensus expectations, thanks to increased product volumes, higher pipeline rates, and higher processing volumes. Due to the high yield offered by MPLX, Scotto considers it one of the most attractive income plays in the large-cap MLP (Master Limited Partnership) space. The analyst expects strong cash flow generation, decreasing leverage, and adequate distribution coverage to drive incremental capital returns to investors over time. Scotto’s positive outlook on MPLX makes it an appealing dividend stock.
Investors should take note of these top dividend stocks recommended by Wall Street experts. Verizon Communications, with its impressive subscriber growth and dividend increase, offers a compelling investment opportunity. Enterprise Products Partners, known for its consistent distribution increases and strong financial profile, is an attractive choice in the midstream energy sector. Finally, MPLX LP’s high yield and solid financials make it one of the most appealing income plays in the large-cap MLP space. As always, investors should conduct their own research and analysis before making any investment decisions.
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